Former Vice Principal and son swindled hundreds of billions of dong
After paying for the company and the schools, Mr. Linh's family still did not become the new owners of the schools. After investigating this matter, Mr. Linh's family discovered that Ms. Yen and her accomplices had signs of embezzling money, so they filed a complaint with the police...
Defendant Truong Thi Yen (60 years old, residing in Phuong Liet ward, Thanh Xuan district, Hanoi) was the Vice Principal of Phuong Nam Private High School. While managing the school's activities, defendant Yen, her younger sister, defendant Truong Thi Kim Dung (56 years old, residing in Phuong Liet ward) and her son, defendant Mai Huy Thanh (33 years old), committed a fraud and appropriated hundreds of billions of dong.
On February 8, the Hanoi People’s Court opened a trial for this case. Previously, in March 2016, defendant Yen was sentenced to 4 years in prison for tax evasion by the Hanoi People’s Court.
According to the indictment of the Hanoi People's Procuracy, in 1996, Ms. Yen, her brother and his wife, and her brother-in-law contributed capital to establish Phuong Nam Private Primary School. Later, this school was expanded to provide continuing education up to high school level with the name Phuong Nam Private High School (abbreviated as Phuong Nam School). Ms. Yen was responsible for operating and managing the entire school.
During its operation, Phuong Nam School had a number of additional members contributing capital. In 2011, Phuong Nam School was assigned by the competent authority to use more than 16,000m² of land in Dinh Cong ward, Hoang Mai district.
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| Defendant Yen (middle) and accomplices. |
Previously in 2001, Ms. Dung and some people founded Binh Minh Private Kindergarten (abbreviated as Binh Minh School). And Ms. Dung was appointed to hold the position of Chairwoman of the Board of Directors of this private kindergarten.
During the years 2008 and 2009, Ms. Yen established two companies, Phuong Nam Education and Training Development Investment Consulting Company Limited (abbreviated as Phuong Nam Company) and Viet Anh Education and Training Development Investment Consulting Company Limited (abbreviated as Viet Anh Company). In fact, both of these companies only existed in form because they did not have any activities.
In July 2010, although Thanh was not a capital contributor of Phuong Nam School, he and Ms. Yen signed the minutes of the meeting of the board of members on the establishment of Thanh Son Education and Training Development Investment Joint Stock Company (abbreviated as Thanh Son Company). Thanh Son Company consists of three members: Truong Thi Yen, Mai Huy Thanh and Truong Thi Kim Dung with a registered capital contribution of up to 268 billion VND.
On July 24, 2010, Ms. Yen and Thanh signed a joint venture contract with the content of merging all facilities, organizational structure and assets of Phuong Nam School into Thanh Son Company but did not complete the procedures for confirmation by the competent authority.
Meanwhile, in reality, the founding members of this enterprise did not contribute capital as registered. During the process of managing and operating the Phuong Nam School system, Ms. Yen used the name of this school to mobilize capital and borrow money from many individuals and organizations, including Mr. Bui Thanh Son (in Dong Da district). Ms. Yen borrowed from Mr. Son the principal amount of 20 billion 383 million VND with an interest rate of 10% - 15% per month.
In 2010, Mr. Son repeatedly asked Ms. Yen to pay him but she refused. Unable to pay, Ms. Yen told Mr. Son that she wanted to sell Thanh Son Company's shares and assign the number of shares corresponding to the debt to him. Knowing that Ms. Yen had such a policy, Mr. Son told his cousin's family, Mr. Bui Hoang Linh.
When meeting, Linh’s family was informed by Ms. Yen, Ms. Thanh and Ms. Dung that Thanh Son Company, Phuong Nam School, Viet Anh Company and Binh Minh School were one. If anyone wanted to buy these two schools, they would have to buy the two corresponding businesses. Ms. Yen and her relatives then provided Linh’s family with documents to prove the legal capacity of the businesses.
Trusting Ms. Yen and the related documents, Mr. Linh agreed to buy back 51% of Thanh Son Company's shares and 51% of Viet Anh Company's shares. To carry out the purchase and sale of the company and the schools, Mr. Linh's family transferred more than 100 billion VND to Ms. Yen and her accomplices, and the remaining 100 billion VND, as agreed by the parties, Mr. Linh will pay to Mr. Son.
However, after paying for the company and the schools, Mr. Linh's family still did not become the new owners of the above mentioned schools. After investigating this matter, Mr. Linh's family discovered that Ms. Yen and her accomplices had signs of embezzling money, so they filed a complaint with the police. This case has been on trial since November 2016.
However, during the trial, the panel of judges found that the victim's testimony, the defendant's testimony, the testimony of those with related rights and obligations, and the documents in the case file related to money had many contradictions that could not be clarified at the trial, so the panel of judges decided to return the file and request additional investigation into the actual amount of money the victim spent to buy the school and business.
The trial of this case lasted for many days.
